1. Six months ago, you purchased 1,200 shares of ABC stock for $21.30 a share. You have received dividend payments equal to $.60 a share. Today, you sold all of your shares for $22.70 a share. What is your total dollar return on this investment? What is your rate of return over this six-month holding period?
2. The long term debt of your firm is currently selling for 109% of its face value. The issue matures in 12 years and pays an annual coupon of 7.5%.What is the cost of debt?
3. Your portfolio is comprised of 30% of stock X, 50% of stock Y, and 20% of stock Z. Stock X has a beta of .6, stock Y has a beta of 1.4, and stock Z has a beta of 1.2. What is the beta of your portfolio?